Portfolio Composition at the end of October 2014

Here is a new edition of my portfolio composition. The last two months have not been particularly kind to my portfolio performance, as can be seen in the next post. In fact, partly due to the fact that I was travelling, and partly due to procrastination due to my relative poor performance in September, I missed putting up my portfolio at the end of September.

But here I am, with my portfolio at the end of October 2014. As usual, this is not a complete disclosure of my portfolio. This list is only of those scripts which constitute more than 1% of my portfolio. Nevertheless, I am also disclosing in the text below if there were major changes in the rest of the portfolio.

Stock

Latest Price

Inv. Price

Overall Gain %

Portfolio %

IDFC (97)

148.25

133.3108609

11.21

10.55%

Oberoi Realty (64)

242.15

238.5116518

1.53

8.96%

eClerx Services (18)

1,347.80

1029.558952

30.91

2.82%

ILandFS (36)

20.2

15.32131761

31.84

2.39%

Larsen (22)

1,597.70

1096.596358

45.7

2.13%

Cummins (4)

720.05

411.2417355

75.09

2.12%

MPS (14)

712.4

128.6641026

453.69

2.12%

Indian Hotels (20)

104.8

73.70118644

42.2

1.88%

Selan Explore (28)

487.9

317.7249493

53.56

1.83%

IRB Infra (18)

254.5

90.26702128

181.94

1.82%

NMDC (28)

168.3

133.9162406

25.68

1.71%

Mayur Uniquoter (11)

430

111.0322327

287.27

1.67%

Balkrishna Ind (11)

756.3

232.4213927

225.4

1.61%

Kaveri Seed (13)

915.45

296.6391304

208.61

1.60%

HPCL (13)

522.15

470.71725

10.93

1.59%

Bharat Forge (9)

801.4

272.25

194.36

1.59%

Shilpa (11)

539.65

370.2180563

45.77

1.49%

Munjal Auto Ind (11)

117.45

33.99787765

245.46

1.43%

PTC India Fin (6)

50.1

14.68682894

241.12

1.36%

Oriental Carbon (9)

382.6

113.2114733

237.95

1.34%

Muthoot Cap (11)

253.2

97.38

160.01

1.33%

Ajanta Pharma (14)

1,887.60

1007.725543

87.31

1.32%

Sesa Sterlite (3)

253.05

150.9941003

67.59

1.31%

Sun Pharma Adv (19)

196.5

123.5597701

59.03

1.30%

EID Parry (13)

218.85

141.47

54.7

1.30%

Poly Medicure (7)

833.15

280.2228601

197.32

1.22%

PI Industries (11)

429.9

171.8891892

150.1

1.21%

Hind Zinc (18)

168.95

121.9935484

38.49

1.20%

RS Software (11)

630.9

204.2701613

208.86

1.19%

Grindwell Norto (7)

526.05

256.5177241

105.07

1.16%

TCS (9)

2,558.20

1953.9

30.93

1.13%

Reliance (7)

979.25

810.3029891

20.85

1.10%

Sobha Developer (14)

430.9

314.4363636

37.04

1.08%

Akzo Nobel (5)

1,299.05

1027.196154

26.47

1.03%

Tata Inv Corp (13)

556.5

404.9865

37.41

1.02%

ICICI Bank (9)

1,614.05

948.6365854

70.14

1.01%

The movement towards consolidation continues. However, this is also tempered by the fact that I have bought new scripts in the last two months. Nevertheless, the number of scripts which have at least a 1% contribution to my portfolio is 37 (compared with 33 at the beginning of September 2014), and together they constiture 71% of my portfolio. As before 32% of the portfolio was invested in the top 8 scripts.

What have I been buying in the last two months? And what did I sell?

Well, I continued to purchase IDFC, Oberoi Realty and IL&FS Investment Managers, averaging down as the stocks fell all of September, and most of October. It requires great guts or folly to keep buying in the face of negative outcomes from a stock price point of view, and sometime in November, I hope to have a post which will talk about these dilemnas.

I also purchased a significant quantity of L&T and TCS, again as they fell. In addition, I added a small quantity of Jaypee Infra, Sobha Developers and DLF, when they fell rather sharply because of a weak real estate environment and negative news flow.

In general, I have also resolved to improve the quality of my portfolio, from a cap goods, finance and realty bias to more quality names with better moats. To this end, I made significant purchases of Indian Hotels (Convertible Debentures) Akzo Nobel (which now is in the list of 1% stocks), United Spirits (which is almost there), and Dr Reddy’s Labs.

What did I sell? Only RS Software at a time when the stock really shot up. At that price of 730 or so, the stock is more expensive than say EClerx, and EClerx has a superior track record of governance, disclosure, earnings, and dividends. I still own significant RS Software, and given my purchase price, I will evaluate my position only after a quarter or two.